Correlation Between Hilton Food and Cellnex Telecom
Can any of the company-specific risk be diversified away by investing in both Hilton Food and Cellnex Telecom at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Hilton Food and Cellnex Telecom into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Hilton Food Group and Cellnex Telecom SA, you can compare the effects of market volatilities on Hilton Food and Cellnex Telecom and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Hilton Food with a short position of Cellnex Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hilton Food and Cellnex Telecom.
Diversification Opportunities for Hilton Food and Cellnex Telecom
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Hilton and Cellnex is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding Hilton Food Group and Cellnex Telecom SA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cellnex Telecom SA and Hilton Food is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Hilton Food Group are associated (or correlated) with Cellnex Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cellnex Telecom SA has no effect on the direction of Hilton Food i.e., Hilton Food and Cellnex Telecom go up and down completely randomly.
Pair Corralation between Hilton Food and Cellnex Telecom
Assuming the 90 days trading horizon Hilton Food Group is expected to under-perform the Cellnex Telecom. But the stock apears to be less risky and, when comparing its historical volatility, Hilton Food Group is 1.06 times less risky than Cellnex Telecom. The stock trades about -0.07 of its potential returns per unit of risk. The Cellnex Telecom SA is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 3,267 in Cellnex Telecom SA on September 13, 2024 and sell it today you would earn a total of 42.00 from holding Cellnex Telecom SA or generate 1.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hilton Food Group vs. Cellnex Telecom SA
Performance |
| Timeline |
| Hilton Food Group |
| Cellnex Telecom SA |
Hilton Food and Cellnex Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hilton Food and Cellnex Telecom
The main advantage of trading using opposite Hilton Food and Cellnex Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hilton Food position performs unexpectedly, Cellnex Telecom can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Cellnex Telecom will offset losses from the drop in Cellnex Telecom's long position.| Hilton Food vs. MTI Wireless Edge | Hilton Food vs. AcadeMedia AB | Hilton Food vs. Fonix Mobile plc | Hilton Food vs. mobilezone holding AG |
| Cellnex Telecom vs. Samsung Electronics Co | Cellnex Telecom vs. Samsung Electronics Co | Cellnex Telecom vs. Hyundai Motor | Cellnex Telecom vs. Reliance Industries Ltd |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. |